HOAs in South OC - What Gives!? (Davis, Rancho Santa Margarita: HOA fees, condos)

[sammy1224]

Hi all,

I know this topic has been discussed in great detail in other threads, but I just don't get it! After years of fairly extensive research, I've come to the conclusion that there are not many available homes in south OC that don't have high HOA fees.

Just for the record, I don't have anything against HOAs. While HOAs suit many peoples' needs, I don't want to personally live in a subdivision that is ruled by one. Especially at a cost of anywhere between $300 and $500 per month.

My question for any of you that have contemplated, and then decided to live in an HOA-ruled neighborhood, what persuaded you to take the jump? Are you happy with your decision, or do you have regrets about having done so?

I'd really appreciate your thoughts on this topic.

Regards,
Sam

[saibot]

I wouldn't be happy about $300-$500/mo either. We live in Rancho Santa Margarita, which has a flat HOA of $55.20/month. (For detached homes, not townhouses/condos...I think those may have an additional fee). That seems reasonable to us for lake and pool membership, clean streets, nice landscaping, and rules that are "not too restrictive" but still keep the neighborhood looking nice. By not too restrictive I mean for instance we can't park cars on the lawn, but it's OK to park cars in the driveway and on the street. Which is not necessarily the case in, say, Aliso Viejo.

We've lived here 17 years and have no regrets.

[nightlysparrow]

Why I fear HOA's:

"The fees may increase from one budget year to the next to accommodate inflation and the rising cost of management, vendors, utilities and maintenance. A California condo board can increase the regular fees by up to 20 percent more than the preceding fiscal year."

Even worse:

"The board can levy the special assessment if it is 5 percent or less of the current year’s budgeted expenses, but an assessment that is more than 5 percent must be approved by the membership. Davis-Stirling doesn’t specifically refer to mid-year fee hikes, but a California condo board is allowed to revise the budget, thus increasing the association members’ fees. The board must give 30 days notice to the membership and must keep the increase within the 20 percent limit. If the previous increase was 15 percent, for example, the revised budget can allow only 5 percent. So, technically, a condo board can raise the fees twice in one year.

How Often Can They Raise Condo Association Fees? | Home Guides | SF Gate

[pacific2]

Originally Posted by sammy1224

Hi all,

I know this topic has been discussed in great detail in other threads, but I just don't get it! After years of fairly extensive research, I've come to the conclusion that there are not many available homes in south OC that don't have high HOA fees.

Just for the record, I don't have anything against HOAs. While HOAs suit many peoples' needs, I don't want to personally live in a subdivision that is ruled by one. Especially at a cost of anywhere between $300 and $500 per month.

My question for any of you that have contemplated, and then decided to live in an HOA-ruled neighborhood, what persuaded you to take the jump? Are you happy with your decision, or do you have regrets about having done so?

I'd really appreciate your thoughts on this topic.

Regards,
Sam

That range usually applies to some condos/townhouses since HOA fees for SFRs are typically much smaller.

[saibot]

Originally Posted by nightlysparrow

Why I fear HOA's:

"The fees may increase from one budget year to the next to accommodate inflation and the rising cost of management, vendors, utilities and maintenance. A California condo board can increase the regular fees by up to 20 percent more than the preceding fiscal year."

This may well be true. We have never lived in a condo so I can't speak to that. I can say that in the 17 years we have lived in RSM, the HOA has been raised twice. It was $39/mo for a long time, then $46, and has now been $55 for several years. So yeah, it's been raised about 40%, but that is over 17 years so it hardly seems excessive.

I suppose the smart thing to do would be to talk to people who have lived in the condo for some time and see if there is a pattern of HOA fees being repeatedly raised. In our SFR, it really hasn't been a problem.

[Spaceman210]

HOAs are another layer of government over your life and are nearly unavoidable apart from older homes. Plan on being an active participant in the community, or be ready to take whatever rules and dues increases they dish out. Living in a condo, there are good and bad aspects of having an HOA. The governance and spending of your money has to be monitored. We just ousted several board members after years of deferred critical maintenance, misplaced priorities/expenditures (such as legal fees and excessive towing of residents' vehicles), paying contractors before work was verified, and accounting irregularities. Select your board members carefully. The management companies the HOA contracts with, just like maintenance contractors, also need to be monitored by the board and are not necessarily competent, responsive, or efficient themselves.